This one is a lot easier than you'd think, and will have your local delivery place wondering why you never call any more.
Sorry for the lack of prep pics, I wasn't planning on posting as it's something we just make every now and then and didn't think much of it. The wife took a picture of the finished product so I figured I'd share.

Heat the veg oil in a large skillet over high heat until it's just starting to smoke. Add the Asian chiles. Toss them for 30-40 seconds until they start to brown and you can smell them. Add the carrots and toss for a minute and a half or so, til they start to brown. Add the scallions and peppers and toss for 45 seconds or so. Then add the garlic and ginger and toss for another 30 seconds. Then add the drained water chestnuts and mushrooms and toss til they start to sizzle, a minute or two. Than add chicken and toss to warm through, maybe 2-3 minutes. You should have a pretty good fond built up on the bottom of the skillet by now. Toss in the mirin or sherry to deglaze. Stir until it's just about evaporated. Then toss your sauce in. Stir until thickened, add the peanuts and you're done. If it's too thick add a little water to get the consistency you want. Serve over rice and garnish with scallions.

I am a huge fan of anything Chinese/Asian! Kung Pow one of my favorites!

Have to save the recipe!

I used to live right next door to a Chinese restaurantand if they saw me walk in the door they KNEW it was gonna be Kung Pow Chicken or Shrimp, Hot and Sour Soup, and Egg Rolls! Didn't even have to order most of the time!

Thanks for the kind words and the points! This has really become one of my favorite meals. If you don't have any smoked chicken on hand, you can make it with raw chicken too. Traditionally it's chicken breast, but I like thick meat better. Just marinate it for a few minutes in soy sauce and some corn starch. The corn starch helps it have a really velvety mouth feel somehow. I've tried it with and without and it does make a difference.
After you fry the hot peppers, just toss in the chicken and stir fry until about 75% done. Then remove, stir fry the veggies and add the chic back in before adding the sauce. I usually do it in 2 batches so I don't crowd the pan.
I've also done this with shrimp, which is AMAZING. Just be careful not to over cook them.